Advise oscar ltd if shown as liability on its balance sheet

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Reference no: EM132796573

problem 1: Oscar Ltd has guaranteed the bank debt of its major supplier of merchandise. Oscar Ltd's attorneys have concluded that it's possible (less than probable but greater than remote) that the supplier will default on its obligations. You have been retained to advise Oscar Ltd if that should be:

1) shown as a liability on its balance sheet,
2) not shown on the balance sheet but disclosed in the notes to the financial statements, or
3) neither shown on the balance sheet nor disclosed in the notes.

Reference no: EM132796573

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